BILL ANALYSIS Ó
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Isadore Hall, III
Chair
2015 - 2016 Regular
Bill No: AB 1765 Hearing Date: 6/28/2016
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|Author: |Irwin |
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|Version: |4/19/2016 Amended |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Arthur Terzakis |
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SUBJECT: CaliforniaVolunteers: nonprofit public benefit
corporation
DIGEST: This bill authorizes CaliforniaVolunteers, within the
Governor's Office, to form a tax-exempt public benefit nonprofit
corporation for fundraising purposes, as specified, and
prohibits the nonprofit public benefit corporation from using
more than 10% of the grants and financial support it receives
for its own administrative costs.
ANALYSIS:
Existing law:
Establishes CaliforniaVolunteers (Executive Order S-24-06) in
the Governor's Office with the specific mission to recruit and
mobilize citizens for volunteer service by identifying service
opportunities throughout the state and by recognizing citizen
contributions as volunteers and participants in public service.
This bill:
1)Authorizes CaliforniaVolunteers to form a tax-exempt public
benefit nonprofit corporation, or other tax-exempt entity,
qualified under federal and state law to raise revenues and
receive grants or other financial support from public or
private sources, for the purpose of undertaking or funding any
lawful activity authorized to be undertaken by
AB 1765 (Irwin) Page 2 of ?
CaliforniaVolunteers.
2)Stipulates that grants and financial support received by the
nonprofit corporation or other tax-exempt entity authorized in
this bill shall be used solely for governmental purposes
approved by CaliforniaVolunteers for activities within its
authority.
3)Provides that no more than 10% of the grants and financial
support received by the nonprofit entity may be used for the
administrative costs of that nonprofit public benefit
corporation or other entity.
4)Specifies that the mission of the nonprofit public benefit
corporation or other entity is as follows:
a) To support the funding of CaliforniaVolunteers
programming and administrative costs; and,
b) To support any priorities set forth by the Governor or
the CaliforniaVolunteers board of commissioners.
5)Provides that the authority to establish the nonprofit public
benefit corporation or other entity shall expire if the
Governor rescinds the establishment of CaliforniaVolunteers.
Background
Existing federal law establishes the National and Community
Service Trust Act of 1993, which requires each state governor to
create and appoint a commission to administer the AmeriCorps
volunteer program. AmeriCorps engages Americans in intensive
service each year at nonprofits, schools, public agencies, and
community and faith-based groups across the country. AmeriCorps
service assignments may be part time or full time and generally
range from ten to 12 months. Service members receive a small
stipend and qualifying members are eligible for an education
award that can be used to pay for college or pay back student
loans.
Existing law, by Executive Order S-24-06, establishes
CaliforniaVolunteers in the Governor's office as the state
commission required under federal law for participation in
AmeriCorps. CaliforniaVolunteers receives approximately
$830,000 from the state General Fund for its operations but most
AB 1765 (Irwin) Page 3 of ?
of its budget is federally funded with a large majority passing
through to AmeriCorps grantees. Duties and responsibilities of
CaliforniaVolunteers include, but are not limited to, the
following:
Recruiting and mobilizing citizens for volunteer service
by identifying service opportunities throughout the state
and by recognizing citizens for the contributions they make
as volunteers and participants in public service programs;
Serving as the state's lead agency for community service
and volunteerism, informing the public of the value of and
need for greater community service and volunteerism in
California, calling upon all Californians to become
involved, and challenging public and private institutions
to create and support community service and volunteer
opportunities; and,
Partnering with other public agencies at the state,
county, and local levels, and the private and nonprofit
sectors to leverage greater resources and create more
opportunities for service and volunteerism.
Purpose of AB 1765. The author's office notes that programs
administered through CaliforniaVolunteers raise a certain amount
of money on their own in order to receive matching federal and
state funds. However, many smaller organizations, including
those in rural and low-income areas are unable to raise the
initial capital needed to secure matching funds. This bill is
intended to provide a mechanism for CaliforniaVolunteers to
generate more revenue from public and private sources to fund a
broader range of programs and engage more Californians in
community service. The author's office believes that additional
resources and programs will enable CaliforniaVolunteers to
recruit a greater number of passionate and civic minded
individuals who will benefit from such a public service
experience.
Prior/Related Legislation
AB 706 (Bonilla, 2015) would have required CaliforniaVolunteers
to administer an AmeriCorps program with a Science, Technology,
Engineering and Math (STEM) focus and authorized
CaliforniaVolunteers to establish a nonprofit entity similar to
the mechanism in AB 1765 (Irwin, 2016). (Vetoed by the Governor
AB 1765 (Irwin) Page 4 of ?
who stated that "without a funding source the program
established in this bill would not be viable.")
AB 2328 (John A. Pérez, 2014) would have established "California
AmeriCorps" to be administered by CaliforniaVolunteers, within
the Governor's Office, and operated under the existing federal
AmeriCorps program guidelines. (Vetoed by the Governor who
stated "while the bill is well intentioned, California already
has programs, such as the California Conservation Corps and the
CaliforniaVolunteers Service Enterprise Initiative, that couple
volunteer service with educational scholarships. I encourage
the Legislature to work through these programs to strengthen
partnerships between volunteers and local governments.")
AB 127 (Jeffries, 2009) would have repealed statutes
establishing the Office for Citizen Initiative and Voluntary
Action within the Governor's Office and instead would have
codified the Executive Order establishing the Office of
CaliforniaVolunteers, specifying the duties and responsibilities
of the office and requiring that the office be led by the
Secretary of Service of Volunteering, who would be appointed by,
and serve at the pleasure of the Governor. Also, would have
established the California Volunteer Commission, which would
have served as California's "State Commission" for purposes of
the federal National and Community Service Trust Act of 1993.
(Died Senate Appropriations suspense file)
FISCAL EFFECT: Appropriation: No Fiscal
Com.: Yes Local: No
SUPPORT:
AT&T
America's Service Commissions
Child Abuse Prevention Center
TechNet
OPPOSITION:
None received
ARGUMENTS IN SUPPORT: Proponents state that "AB 1765 will
enable CaliforniaVolunteers, through a tax-exempt entity, to
receive money directly from private and public sources that will
AB 1765 (Irwin) Page 5 of ?
ultimately benefit its diverse service programs across the
state. It will also be able to support a wider range of service
organizations across California that may otherwise not be able
to secure funds on their own. Rural and lower-income
communities can benefit from increased funds to secure matching
state and federal grants."